Marketing return on investment: seeking clarity for concept and measurement

Dominique M. Hanssens, Paul W. Farris, James D. Lenskold and David J. Reibsteins

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Abstract: As the need for accountable marketing spending continues to grow, companies must develop sound metrics and measures of marketing’s contribution to firm profitability. The leading metric has been return on marketing investment (MROI), following the widespread adoption of ROI metrics in other parts of the organisation. However, the ROI metric in marketing is typically interpreted and used in a variety of ways, which causes ambiguity and suboptimal marketing decision making. This paper seeks to remove the ambiguity around MROI to guide better measurements and analytics aligned to financial contribution.


Keywords: ROI, marketing impact, marketing metrics, marketing resource allocation, marketing budgeting

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